As we embark on a new year, the landscape of workforce management is witnessing a paradigm shift, with rising costs taking centre stage as the primary concern for 84.4% of Irish firms, according to a recent survey by employment advisers Peninsula Ireland. This marks a significant departure from the preceding emphasis on staff shortages, signaling a dynamic evolution in the challenges faced by employers.
One noteworthy trend emerging from the survey is the strategic approach employers are adopting to deflect pay demands. As higher costs replace staff shortages as the top concern, employers are exploring alternative perks such as healthcare or training initiatives. In this context, 27.8% of Irish employers find themselves grappling with the challenge of pay increase requests, surpassing their global counterparts.
The survey sheds light on the proactive measures taken by employers to retain their workforce. While the majority (62.2%) have opted for financial incentives, the standout trend is the remarkable surge in “rewards and recognition” programs, witnessing a 222% increase. This underscores a growing acknowledgment of the importance of acknowledging and appreciating employee contributions.
Furthermore, a significant 58% uptick in firms offering skills and training programmes s reflects a commitment to upskilling as a strategic response to the evolving demands of the market. This aligns with the broader trend of companies recognizing the imperative of investing in their employees’ professional development.
However, the survey unveils a nuanced perspective on flexible working arrangements in Ireland. Contrary to the trends observed in the UK, Canada, Australia, and New Zealand, there is a 14% decrease in flexible working options and a notable 17% decline in hybrid working. Almost half of Irish firms (49.1%) report that staff are now back in the office full time.
As we navigate the complexities of 2024, the survey also highlights an eightfold increase in challenges categorized as “other.” This is attributed to the impending implementation of new legislative measures on sick pay, minimum wages, and leave, shaping the landscape in unprecedented ways.
In response to these dynamic changes, employers’ group Ibec has recently called for a moratorium on new labour laws to allow firms to implement existing agreements effectively. The synergy of adapting to rising costs, addressing employee compensation innovatively, and navigating legislative changes will undoubtedly define the strategies of Irish firms in this unfolding year. As employers, HR professionals, and decision-makers, staying abreast of these trends and proactively adapting to the evolving landscape will be crucial for success in the ever-changing world of workforce management.
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